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Branch Formation IN DUBAI

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Mainland Branch formation in Dubai

Advantages of Mainland Branch Formation – Forming a mainland branch in Dubai offers several advantages for companies looking to expand their operations in the UAE:

  1. Market Access: Mainland branches can operate throughout the UAE without geographical restrictions, allowing access to a broader market and customer base.
  2. 100% Ownership: Unlike new companies, branches can be fully owned by the parent company, providing complete control over business operations and strategic decisions.
  3. Brand Recognition: Establishing a branch helps leverage the parent company’s brand reputation, facilitating easier market entry and customer trust.
  4. Business Opportunities: Mainland branches can bid on lucrative government contracts and projects, which are typically inaccessible to free zone entities.
  5. Ease of Operations: Mainland branches benefit from simplified administrative procedures and do not require a local sponsor or service agent for licensing, reducing setup complexities.
  6. Tax Benefits: Dubai offers a favourable tax environment, with no corporate income tax on most business activities, enhancing profitability.
  7. Economic Growth: Dubai’s robust infrastructure and strategic location provide an ideal environment for business expansion, offering numerous growth opportunities in various sectors. 

Visa Price

AED 12,000
Estimated Cost
  • Including the License Fee, Initial approval, trade name reservation, and LSA agreement
  • Health Insurance not Included

Process to Open a Branch Company in Dubai

Opening a branch company in Dubai involves a structured process that allows an existing company to expand its operations into the UAE. Here are the key steps involved

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Step 01

Determine Business Activity

Identify the business activities that the branch will undertake, ensuring they align with the parent company’s operations and comply with UAE regulations.

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Step 02

Trade Name Reservation

Choose a suitable trade name for the branch and reserve it with the Department of Economic Development (DED).

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Step 03

Local Agent Appointment

  1. Appoint a Local Service Agent (LSA) who will facilitate administrative processes. The LSA does not hold ownership or profit-sharing rights. This is an optional step, you can keep the local agent in order to get the assistance for the visa while if not then Manager on the license needs to be a UAE resident.
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Step 04

Obtain Initial Approval

Submit the required documents, including the parent company’s registration and incorporation certificates, a board resolution, and power of attorney, to the DED for initial approval.

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Step 05

Lease Office Space

Secure a physical office space in Dubai and obtain a tenancy contract and Ejari certificate.

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Step 06

Apply for Licenses

Submit the final application to the DED, including the local agent agreement, office lease, and notarized documents, to obtain the branch license.

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Step 07

Register with Authorities

Register the branch with the Ministry of Economy and other relevant authorities to comply with regulatory requirements.

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Step 08

Open Bank Account

Open a corporate bank account in Dubai to facilitate financial transactions.